Announcement

Posted in Marketing and Strategy Terms, Total Reads: 379
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Definition: Announcement

An announcement date can be defined as a date at which a company announces the details of an issue of equity or debt. Normally, announcement date is the first day the public receives information about a new security issue in the market. Announcement date is also defined as a day which coincides with the release of new financial news in the market like earning reports of a company or changed interest rates in the market.


It is observed that on announcement dates companies reveal the type of security or instrument that they are going to issue. Also when a company announces a debt or equity issue for a particular period of time it will be called as announcement dates. This kind of announcements provides with new expectations that analysts seek of what the company has planned for their operations. Many times the reason for fund raising is also included in the announcement made by the company. An earnings announcement is made by a company normally on a specific date during the earnings season and is generally preceded by estimates of earnings done by equity analysts.


An earnings announcement can also be referred as an official public announcement made by a company which indicates the company’s profitability for a particular period of time which may be a year or a quarter. It is observed that when a company makes an announcement and if the company is profitable there is a strong chance that its share price will increase after the information is released by the company. It often happens that when a company is about to make an earnings announcement, the days leading up to announcement are often filled with speculation. Announcement attracts a lot of attention of investors.


For example; when a company announces information about its next dividend payment it is referred as an announcement date.

 

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